With the deal with the private equity firm, the shapewear brand is now valued at $1.2 billion, the companies announced Wednesday.
Sara Blakely, the founder and chief executive of Spanx, will maintain a significant stake in the company and will oversee the company’s daily operations as executive chairwoman.
Blakely founded Spanx in 2000 and helped pioneer today’s shapewear industry. Spanx made between $300 million to $400 million in revenue in the last year, according to the New York Times, which reported that the company was shopping for buyers back in June.
Blackstone’s stake in Spanx underscores the opportunity investors see in shapewear, as apparel sales pick up post-pandemic. Sales of women’s underwear, including shapewear, hit $9.8 billion in 2020, according to Euromonitor. In addition to Spanx, there’s Kim Kardashian’s Skims, which earned a reported $145 million in 2020 and boasts a valuation of $1.6 billion after its last funding round.
“Shapewear now has a permanent space in our wardrobe,” said Gabriella Santaniello, founder of retail research firm A-Line Partners. “Spanx, Skims, these are not your mother’s shapewear companies. It doesn’t have to be painful and provides solutions. They make shoppers feel more secure and comfortable.”
